1. Value for money – why is it important?

2. The definition of VfM in social housing
The delivery of an organisation’s social objectives and business strategy in the most cost-effective way possible

3. This could mean – for housing management
Providing the same thing for less money, eg, working SMARTer
Getting more for the same money, eg, grounds maintenance cut and collect for the same price as a cut and leave
Getting ‘added’ value, eg, support for social enterprises
Investing to save, eg, higher relet standards improving tenancy sustainability, reducing turnover and reducing arrears and ASB

4. Why VfM is important to our business
Getting the best out of available resources and creating extra capacity for…
New build?
Improved services?
Letting us continue to deliver existing services!
It promotes an ‘open and transparent organisation’ demonstrating the best use of resources to all stakeholders
The regulator expects you to achieve VfM from your business

5. Why VfM is important to our business...(cont’d)
Customers are constantly looking for VfM (supermarkets, insurance companies, MoneySavingExpert.com, voucher codes)
Social housing providers need to prove they are delivering VfM to their customers and to deal with the new business challenges

6. Welfare reforms - impact on social housing landlords
Less income – cash collection down
More tenancy turnover
Higher demand for smaller homes
Less demand for larger homes
Operating costs rising – more staff costs (collection/support) and repairs costs up
Smaller homes – new or convert existing homes
Greater number of abandonments

7. What does less cash mean to the business?
Potentially - failing lenders’ targets and requirements
Needing to take action to recover income or reduce costs
Quality cost effective services – value for money
Doing less – new build very resource hungry
Explaining to tenants more about the situation, the options and actions being taken

8. Value for money – the building blocks
Financial strategy
Efficiencies and targets
Understanding costs
Procurement
Performance management
Information development
Embedding a VfM culture which links to all other policies

9. How do all the plans fit together?

10. How can we improve value for money within our organisation?
Get everyone thinking about costs and efficiencies
Understand the impact that less cash will have on the business
Get the messages out to customers, getting their feedback and acting on it
Understand the impact of the welfare reforms
Create and embed a value for money culture

11. Thinking about VfM in the organisation
Better procurement
Getting things right first time (not just in repairs!)
Cutting out waste and duplication
Standardising/simplifying systems
Increased use of technology, eg, handhelds, smartphones
More self-serve by customers e.g. internet
Organisational/departmental/team restructures
Better management of assets
Getting the most from partnerships

12. Getting the message out to customers and getting their feedback
Giving feedback about what is important to them – lower rents or quality of service?
Taking part in VfM initiatives and procurement
Comparing their landlord with others
Identifying bad practices
Getting customers involved in helping to make VfM suggestions

14. Creating a culture of VfM
The 4 ‘C’s:
Understand the CONSEQUENCE of not achieving VfM
COMPARE running costs
Have a clear COMMITMENT to VfM
COMMUNICATE VfM to staff and customers

16. How can we get better VfM from our housing management service?

17. How do we compare – costs and performance
How do our housing management costs, performance and satisfaction compare with others?
Where are our costs higher/lower?
Where is our satisfaction higher/lower?
Where is our performance higher/lower?
Do we know what is driving up the costs or driving down performance/satisfaction? Is it due to:
Different standards/quality?
Geographical spread of the homes?
Specific patches that require intensive management?
Low demand properties/areas?
The client group?
What can we do about this?

18. Customers – what do they think?
How do we get customer feedback about the housing management service?
How do we use this to shape housing management around customers’ priorities?
How do we use profiling to properly target our resources?
What examples have we to show how customer feedback influences the housing management service?
How do customers know how much is spent on the services delivered? How can they influence this?
How do customers scrutinise the quality and cost of the services delivered – and striking the right balance?
How do customers know how our service compares with others – cost, standards, performance, satisfaction?
How are customers involved in assessing VfM?

19. Are we making the most of our resources?
Could housing management services be delivered more efficiently?:
Rationalised delivery, delivering more than one service at the same time
More use of self-serve initiatives? – enhanced telephone and online recording
Mobile working and better logistics when visiting customers? – more efficient use of time and reduced mileage
Flexible working hours that better suit customers and staff?
How aware are we of the need to manage costs:
Do we think “do we need to spend this” before we commit?
Do we have a robust approach to procurement – making every penny count?
Do we value staff time and think about whether we’ve making the best use of it?

20. Striking the right balance...
Good services cost money
Quality doesn’t always come cheap
VfM is about striking a balance between cost, needs and quality
VfM is high when there is a balance between relatively low costs, high productivity and successful outcomes

21. What does ‘good’ look like for us?
What are we aiming to achieve – how are we striking the right balance between cost and quality?
Brainstorm some ideas with staff teams
Can we give them some questions to facilitate this?

22. How will we get there – our VfM plans and targets for housing management
How do we use information (about customer priorities and comparative performance/costs) to improve our VfM position for housing management?
What is our strategy?
What VfM targets have been set – over what periods?
What has been achieved? How have any savings made been used?
What savings are planned?
What will happen to any future savings that are achieved?

23. The start of the tenancy
Could homes be relet faster?
Could processes be streamlined more – voids management and lettings?
Are we getting it right first time – right homes being allocated to the right customers?
Do we know and monitor the reasons for refusals? What are we doing do reduce refusal rates?
Are we meeting tenants’ expectations – the quality of the relet, the relet process?
Are we risk assessing tenants and providing necessary support to sustain the tenancy where needed?

24. The management of the tenancy
Are tenants clear about their responsibilities?
Are we managing tenancies proactively?:
Is there a programme of tenancy audits?
Is there an up to date record of household details and is this used to influence the service provided?
Are introductory/starter tenancies monitored and action taken?
Is prompt action taken when tenancy fraud is identified? What is the level of tenancy fraud? How does it compare with other organisations?
What are we doing to try and help our tenants to sustain their tenancies:
Signposting and facilitating support?
What are we doing to help tenants be more mobile:
Mutual exchanges?

25. The end of the tenancy
Do we understand the reasons for terminating tenancies? What do we do to try and prevent terminations? Could actions be taken to support the tenant and extend the tenancy for longer? NB it is usually cheaper to continue a tenancy rather than start a new one, eg, void costs
What do we know about tenancy sustainment and turnover rates? How do they vary? What are we doing to improve the position? How does it compare with other landlords working in our areas?
Is the tenancy termination process streamlined? Is contact made with the existing customer quickly enough? Is best use made of the notice period?
Do tenants give proper notice? If not what are we doing about this?
Are tenants clear about their responsibilities? Do we enforce them? Do we assess the property and recharge repairs?
Do we get feedback about what could be done better from a tenants’ perspective? Do we act on this?

26. ASB
Do we do enough to prevent ASB from occurring? Do we reference new tenants?
Are we dealing with reports of ASB properly and early enough – before they escalate and become harder to resolve?
Do we use all the tools available before starting costly court action?
How good are we at working with others? Do our partnerships work? Are we accessing all the resources available and making the most out of them?

27. And we just keep going…..

28. Links to useful information:
HQN 
HCA: